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  1. #1
    On Vacation
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    Jun 2004
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    Question getting the used car dealership license?

    latest i have heard to become a member of the association (and receive tax exceptions when importing used cars) one needs:

    recommendation (invitation) from 3 existing members.
    recommendation from 2 business owners (any business).
    500 m2 of land near a major highway under lease.

    the land and the recommendations from business owners in other fields of business is not a problem, but the hard part is getting the recommendation/invitation from existing members, since nobody wants to create more competition for themselves. seems that it is a very closed circle and new members are not welcome, which gives the existing members monopoly of the market.

    if anyone knows anything more about this (loopholes, pay this guy off and he'll get it for you...) please reply. thanks.

  2. #2
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    It's called a "barrier to entry". It's there for a reason, like a "closed shop" state.

    Good luck.

  3. #3
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    Feb 2007
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    Try to find car salesman friends in other geographic areas. E.g if you live in Santo Domingo, go look for one in Barahone. If you live in Puerto Plata, go look for one to El Seybo. That way thay may be willing to give youa recommendation (offer them gifts...) because you will not create a direct competition for them. I might be willing to CHECK if I can get one for you from a delaer in Higuey where I have a good relationship. Also, my GF's family member (some second cousin or uncle something like that) has a delaer in Santo Domingo, might also try that avenue. Let me know.

  4. #4
    On Vacation
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    thanks a lot Rubio for offering to help. i currently live in Sosua (Perla Marina). i have been investigating this for a while and it is very difficult to break in. right now i am thinking of maybe making a deal with an existing dealer where i would import a car thru him and once it's sold give him a cut of the profit. that is unless i can open my own dealership. the markups on SUVs are astronomical. just yesterday i was in POP and saw a Hummer H2 on sale for 65.000 USD and same one in Toronto (a have a close friend who is a licensed dealer in Toronto) goes for around 25-27.000. Porsche SUVs are around 30-35.000 and here 60.000+. same for Infinity QXs. if it is not much of a hassle ask your friends if they would do the favor and what do they expect in return, or maybe they being already members know of any inside tricks for getting the license. thanks again. if this thread gets pushed back by new ones you can reply by PM. thanks.

  5. #5
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    Liam: This can be a good business, but I think you're mistaken when you think that the markups are astronomical and the dealer makes most of that profit. The reason why cars are so expensive doesn't have to do with dealer markup, but with government taxes, registration fees, etc. That same SUV that cost 25k in Toronto you have to take into account shipping costs, 35+% of customs taxes + 25% or so registration fees + other hidden fees, etc...pretty soon the SUV cost turns out to be 55,000+ and you're making just a bit of profit. It's a very tricky business where you have to contend with corrupt custom officers, exchange rate fluctuations, theft, etc. It is based a lot on relationships and you need to make sure you have that network of friends to help you out. You also need to make sure you have the balls to be in that business as you'll need it when people try to rip you off (as they will).

    My brother is an established dealer in Cotui. PM me if you want to discuss...We may be able to help each other out.

  6. #6
    On Vacation
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    Jun 2004
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    Thumbs up

    thank you suarezn. i am just packing up and leaving for SD this moment. will stay for a few days and won't be logging onto DR1 until i'm back. hope we will continue this discussion then and get a bit deeper into the numbers and details. thanks again.

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